LVMH 2012 Environmental Report Highlights Progress

LVMH 2012
—
ENVIRONMENTAL REPORT

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SUMMARY
— Introduction
01

INTRODUCTION

03

MESSAGE FROM THE CHAIRMAN
AND CHIEF EXECUTIVE OFFICER

04

MESSAGE FROM THE GROUP
MANAGING DIRECTOR

05

SPOTLIGHT: 20 YEARS OF
ENVIRONMENTAL ACTION

12

A NEW MILESTONE:
THE “LIFE – LVMH INDICATORS
FOR ENVIRONMENT” PROGRAM

38

SUPPORTING OUR EFFORTS

52

OBJECTIVES

56

METHODOLOGY FOR THE LVMH
GROUP’S ENVIRONMENTAL
REPORTING

59

REASONABLE ASSURANCE
REPORT OF THE INDEPENDENT
AUDITOR ON SELECTED
ENVIRONMENTAL INDICATORS

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The year 2012 marked 20 years since Bernard Arnault’s decision
to create the LVMH Environmental Department, demonstrating
that our Group’s Houses have long been taking environmental
concerns into account. The idea that the design of luxury
products must incorporate not only innovation, creativity and
excellence of execution but also environmental performance
is in the minds of our customers and partners. The values that
stem from the unique heritage of our Houses are embodied
in the expertise and commitment of our teams responsible
for environmental issues.
This 20th anniversary also corresponds to the gap between
the two Rio Earth Summits in 1992 and 2012. Obviously this time
span has not been enough to completely address the major
environmental challenges. But like all stakeholders, businesses
must be ready to play their part, and at LVMH we are
determined to continue all of the initiatives we have undertaken
with our partners. In 2013, we will be introducing a new
milestone in our efforts to safeguard the environment through
our “LIFE – LVMH Indicators for Environment” program,
which is an integral part of the Group’s strategy.

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LVMH 2012
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Message from the Chairman and Chief Executive Officer

A LONG-TERM VISION

LVMH comprises a family of iconic brands that cultivate their magic
and perpetuate exceptional know-how, a consistent strategy and an
exceptionally broad, high-quality retail network. In addition to the
intrinsic stability and ﬁnancial strength of our company, our brands
have been patiently built up over time.
They take into account issues that are inseparable from
our long-term strategy, namely the safeguarding of the natural
environment, to which LVMH owes so much, corporate social
responsibility, and strict ethical standards which we share with
our suppliers, customers and shareholders.
This intangible capital is paramount to our future success.
…

Bernard Arnault
Chairman and Chief Executive Officer

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Message from the Group Managing Director

AMBITIOUS POLICY
AND INITIATIVES IN KEEPING
WITH LVMH VALUES

In addition to heritage and legacy, quality and creativity are today
more than ever our Houses’ key strengths. Our customers are
highly knowledgeable and passionate, and now have increasingly
high levels of expectations as they turn toward products that
are rare, exclusive and exemplary. Most notably, they expect our
products to reflect best practices in terms of sustainable
development.
Our Environmental Department, which celebrated its
20th anniversary in 2012, is tasked with meeting these expectations.
It defines our environmental strategy and helps the Houses
implement their own initiatives. This past year was characterized
Antonio Belloni
Group Managing Director
by the progress of the “LIFE – LVMH Indicators For
Environment” program, designed to identify key areas in which
to strengthen the management of the brands’ environmental challenges. De Beers, Belvedere,
Glenmorangie and Loewe have joined the program, which was implemented by seven pilot Houses
in 2012. The goal is gradually to extend the program to all Houses.
Mention must also be made of our other flagship projects: “Improving, from upstream to downstream,
the footprint on biodiversity of LVMH activities,” which received official recognition from the French
Ministry of Ecology for its contribution to France’s National Strategy for Biodiversity; the launch
of the Edibox tool designed to assess the environmental performance of new packaging, particularly
for the Perfumes & Cosmetics and Wines & Spirits Houses; construction of the new “high
environmental quality” facility at Mont Aigu, Moët & Chandon’s new fermenting cellar;
and the gradual roll-out of more energy efficient lighting in our stores. Other initiatives
are also presented in this report.
Our brands’ products are particularly sought after since they embody the highest ethical and
sustainable development standards, from design and sourcing to distribution and supplier
partnerships. This responsible approach is a critical factor in perpetuating the success of LVMH
and our Houses.
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LVMH 2012
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Environment

20 YEARS OF ENVIRONMENTAL ACTION

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LVMH 2012
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20 years of environmental action

THE GREAT DIVERSITY
OF OUR BUSINESSES

LOOKING FORWARD
A COMPANY READY TO MEET
ITS CHALLENGES
Meeting sustainable development challenges is a long-term
undertaking that will strongly influence the Group’s operations,
shape our markets’ future challenges, and identify opportunities to
grow our brands. Developing and strengthening LVMH’s environmental strategy has increased our understanding of this reality
within our company and enabled us to share with our partners the
requirements and restrictions relating to how we conduct our
business.
MULTIPLE INTERACTIONS

During these past 20 years, we have noticed that the commitment
and convictions of our stakeholders, even though we are all moving
in the same direction, have not been advancing at the same pace as
ours, and have revealed a number of vulnerable areas. We now have
greater insight into a whole range of dynamics regarding values and
commitments, and are better able to take them into account.

The great diversity of LVMH businesses is a characteristic of
our Group. It is both an asset and a challenge. Unlike all of our
competitors, LVMH is the only group to bring together such a
broad array of businesses. Despite their marked individuality, the
five LVMH business groups – Wines & Spirits, Fashion &
Leather Goods, Perfumes & Cosmetics, Watches & Jewelry and
Selective Retailing – are linked by a shared vision of environmental challenges. Some issues apply group-wide and are monitored in a very specific way. These include consumer health and
safety, responsible sourcing and biodiversity, eco-design and
product quality, reducing the environmental impact of manufacturing facilities, lower energy consumption, and supplier quality
and responsibility.
In addition to shared concerns, the Houses impact the environment in various ways and to varying degrees, depending on the
sector and business line, within which operating challenges are
clearly identified.
A WELL-ADAPTED
ORGANIZATION

Consistent with our history, our size as a major international
group, and the very specific nature of our businesses, LVMH is
both decentralized and unified. Decentralized because the risks
and opportunities resulting from environmental considerations
must be individually managed by each business group, House and
region.
But unified because we have consolidated our development
around shared principles of responsibility, methodologies and
action plans.
Against this backdrop, we have learned to constantly adapt our
environmental goals and projects according to local challenges
and particularities, while still creating cross-functionality and
synergies between Houses and business groups, which often
experience the same problems and can teach the same lessons.

THE GROUP’S ABILITY TO MANAGE RISKS AND OPPORTUNITIES
WITH REGARD TO ENVIRONMENTAL PROTECTION

Planet
More efficient and
innovative processes
and products reflecting
environmental
and biodiversity
considerations

Employees
Well-informed
employees, aware of
environmental issues
and motivated to take
action

Partners
and suppliers
Top suppliers selected
and our approach
shared with partners

Customers
Meeting customers’
expectations, in terms
of the information
they require, and their
values with regard
to the environment,
health and safety

Society
Being committed
to the community
and promoting
a responsible
production and
consumption model

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THE GROUP’S VALUES

Sustainable development is inseparable from LVMH’s strategy
because there is a natural link between luxury and sustainable
development.
– Employee know-how and product quality are a fundamental
part of our brands’ intangible capital. The environmental aspect
of our products is more important than ever, including in emerging markets. Customers can more easily justify their consumer
choices if they know they are investing in products that have
stood the test of time. A brand is even more desirable if its products embody high standards of materials, safety, quality and
shipping.
– The environmental aspect of our products and the management of our facilities also serve to strengthen our Houses’ social
relevance. Their workshops and production sites are ﬁrmly established in their respective local regions. Their heritage, know-how
and innovations all incorporate environmental considerations,
and their staff regularly participate in public and specialist
debates.

– That said, the Houses are aware that there is room for
improvement. The best practices presented in our 2012
Environmental Report attest to the initiative of our staff and the
quality of the measures that will continue to be strengthened.

BUSINESS GROUPS’ MAIN CONCERNS
Wines & Spirits
Saving energy resources • Packaging production.
and combating climate • Distillation.
• Transportation of product
change
shipments.

Fashion & Leather Goods

Perfumes & Cosmetics

Watches & Jewelry

Selective Retailing

• Store lighting
and air-conditioning.
shipments.

• Packaging production.
shipments.

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• Store lighting
and air-conditioning.
• Transportation
of product shipments.

Protecting and saving
water resources

• Water consumption
(irrigation of vines in
Australia, New Zealand,
Argentina and California).
• Production of effluents
containing organic matter
during wine-making
and distillation.

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• Protection and saving
of water resources.

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Protecting ecosystems
and natural resources

• Especially plant resources
(vines) required for
production.

(textile fibers) required
for production.
• Exotic leather.

required for production.

• Packaging.
• Stones and precious
metals.
• Exotic leather.

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Waste recovery

• Wine-making and
distillation processes.

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• WEEE (waste from
--electrical and electronic
equipment, such as
batteries).

Reducing the impact
of production and
transforming raw
materials, particularly
through eco-design

• Packaging.

• Packaging.
• Cotton and other textiles,
leathers.
• Tanning.

• Packaging.
• Constituents of perfumes
and cosmetics.

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MILESTONES TO DATE
COMMITMENTS UNDERTAKEN
AND UPHELD
International charters and agreements signed by LVMH provide the framework for the initiatives led by the Group and its
Houses. In 2003, Bernard Arnault joined the United Nations Global
Compact and in August 2007 ratiﬁed Gordon Brown’s Millennium
Development Goals. LVMH also supports the Universal Declaration
of Human Rights, the OECD Guidelines, the basic conventions of
the International Labor Organization, and Caring for Climate (a
program of voluntary initiatives that supplement the UN Global
Compact).
In 2005, the LVMH Watches & Jewelry business group joined
the Responsible Jewellery Council (RJC). Now every House in the

INTERNAL CHARTER AND CODES OF CONDUCT

AGREEMENTS SIGNED
– United Nations Global
Compact (2003)
– Gordon Brown’s Millennium
Development Goals (2007)
– Watches & Jewelry Houses
members of the Responsible
Jewellery Council (RJC)
since 2011

Watches & Jewelry business group is a member of the RJC and has
been since 2011.
Our Environmental Charter, signed by Bernard Arnault in 2001,
deﬁnes the LVMH Group’s goals and dynamics. Our Supplier Code
of Conduct, adopted and implemented in 2008, and the LVMH Code
of Conduct, adopted and circulated to all Group employees since
May 2009, complement this Charter with a reminder that compliance with laws, regulations, and national and international decisions,
particularly with regard to the environment, is absolutely essential if
we are to ensure that our approach is credible. We believe that success is not possible without taking into account the major concerns
of the human environment, which means being engaged in a way
that is useful and constructive. Consequently, our Supplier Code of
Conduct sets out the requirements, particularly environmental ones,
which must be followed by suppliers. The third of the six key principles of the LVMH Code of Conduct is devoted to environmental
protection.

Environmental Charter (2001)
• Aim for a high level of environmental
performance.
• Encourage collective commitment.
• Control environmental risks.
• Design products by integrating
environmental innovation
and creativity.
• Make commitments outside
the company.

Supplier Code of Conduct
(March 2008)

LVMH Code of Conduct
(May 2009)

• Environmental requirements
and responsibilities.

• Commit to safeguarding the
environment (3rd principle).
• Promote collective commitment.
• Safeguard natural resources
and incorporate environmental
considerations into products.
• Control environmental risks.

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In 2012, the LVMH Group was included in the following key indices based on responsible investment criteria:

DJSI World

LVMH was distinguished in the 2012
SAM Sustainability Yearbook in the
“Clothing, Accessories & Footwear”
category as a member of the “SAM
Bronze Class”.

FTSE4Good
Global 100

ASPI
Eurozone

ESI (Ethibel
Sustainability Indices) Europe

On June 10, 2012, Forum Ethibel renewed its award of the “Ethibel Excellence” label,
which recognizes companies most committed to CSR and which may be included
in the Ethibel sustainable investment register.

Other assessments and classiﬁcations include:

A score of 65/100 in the “Carbon Disclosure Project
2012” (November 2012) LVMH also responds to the
CDP Water Disclosure.

CFIE

A rating of 65.9/100 for 2011 awarded by the French
Center for Company Information (CFIE) as part of
the “2012 Annual Study on Social and Environmental
Information in Corporate Annual Reports”
(November 2012).

LVMH has responded since its founding to the
Forest Footprint Disclosure.

FOREST
FOOTPRINT
DISCLOSURE

LVMH is a signatory to the UN Global Compact and
published its CoP (Communication on Progress) at
the “GC Advanced” level in November 2012.

RECOGNITIONS
OBTAINED
The commitment of the LVMH Group is
recognized in France’s National Strategy
for Biodiversity (SNB).
LVMH committed to the National Strategy
for Biodiversity 2011-2020, presented
by the French government in May 2011.
This strategy is France’s version of the
Strategic Plan for Biodiversity 2011-2020
for the planet, adopted at the Convention
on Biological Diversity in Nagoya
in October 2010.
In October 2012, the French Ministry
of Ecology, Sustainable Development and
Energy awarded LVMH “National Strategy
for Biodiversity Recognition” for its project
described as “Improving, from upstream to
downstream, the footprint on biodiversity
of LVMH activities, with the goal of having
a positive impact on biodiversity.”
(See page 19.)

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1992

1998

CREATION OF THE ENVIRONMENTAL
DEPARTMENT
The creation of the environmental department in 1992 marks a
key date in the Group’s environmental commitment. This is the
department that imbues the Houses with a shared strategic vision
and helps them implement their own initiatives. This formal structure is part of the ongoing sustainable development action in which
the Research and Development departments and various businesses (Wines & Spirits and Perfumes & Cosmetics) have always
been involved.

FIRST ENVIRONMENT
COMMITTEE
This same year, an Environment, Health and Safety Committee
was created, comprising around a dozen House representatives.
Today the Group’s Environment Committee has more than
50 environment representatives, who meet every year to share
their House’s best practices.

ISO 14001 CERTIFICATION
OF HENNESSY
In 1998, Hennessy became the first spirits company in the world
to be awarded ISO 14001 certification. Since then, the certification
has been renewed every three years. Many other LVMH Houses
have followed this example and obtained environmental management certification at their sites, specifically Veuve Clicquot,
Louis Vuitton, Krug, Moët & Chandon, Cape Mentelle, Belvedere,
Domaine Chandon Australia, Guerlain, Parfums Christian Dior,
Glenmorangie, and TAG Heuer.

2001
SIGNATURE OF
THE ENVIRONMENTAL CHARTER
Signed by Bernard Arnault in 2001, the LVMH Environmental
Charter is a serious undertaking that involves each House chairman and requires a system of environmental management to be
put in place. It is the starting point of an ambitious strategy
divided into five areas:
– a high level of environmental performance;
– collective commitment;
– control of environmental hazards;
– products that integrate environmental innovation and
creativity;
– commitments outside the company.

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2006

FIRST ENVIRONMENTAL REPORT
While taking action is essential, imparting knowledge is equally
important. In 2001, well before the “NER” decree of February 20,
2002 regarding the inclusion of environmental and social information in the reports of listed companies, the Group published
full details of environmental initiatives in its annual report,
supplemented by a separate environmental report. The
Environmental Report for 2012 is now the twelfth such report.

2002
FIRST CARBON FOOTPRINT® COMPLETED
AT VEUVE CLICQUOT
In 2001, Veuve Clicquot, Parfums Christian Dior and Hennessy
produced an analysis of their greenhouse gas emissions and
defined a strategy to reduce them, proving forerunners to the
decree of July 11, 2011 requiring companies with more than
500 employees to report their greenhouse gas emissions. This
process would eventually be refined and result in the creation of
the Carbon Footprint® tool of the French environment and
energy management agency ADEME. The tool would be rolled
out in 2004 at Louis Vuitton, Moët & Chandon, Guerlain, Parfums
Kenzo, Parfums Givenchy, Givenchy Couture, Make Up For Ever,
DFS, Sephora and Le Bon Marché.

2004

FIRST “HQE” BUILDING
Modern and eco-friendly, “Eole-Cergy 3”, the new Louis
Vuitton logistics platform in Cergy, was officially opened in 2006,
becoming the first LVMH building to conform to France’s high
environmental quality (HQE) specifications. Since then, many
other Houses around the world have pursued similar initiatives
in the construction or refurbishment of their buildings,
observing standards and certifications currently available,
namely: HQE, Low Energy Buildings (BBC), BRE Environmental
Assessment Method (BREEAM), and Leadership in Energy and
Environmental Design (LEED).

2011
FIRST RJC CERTIFICATIONS
The LVMH Watches & Jewelry business group became a member of the Responsible Jewellery Council (RJC) in 2005. Since
2011, all Houses in the Watches & Jewelry business group have
been RJC members. The RJC has developed a certification system for members involved in gold and diamond work which
requires audits by accredited independent auditors. Between 2011
and September 2012, all Watches & Jewelry Houses obtained RJC
certification. These include Bulgari, Chaumet, Christian Dior
Couture, Fred, Hublot, TAG Heuer (and retail subsidiaries in the
United Kingdom, Japan and the United States) and the jewelry
business of Louis Vuitton and Zenith.

FIRST TRENDS BOOK AND MATERIALS
REFERENCE LIBRARY
Every year since 2004, the Environmental Department has
published an Eco-Material Handbook which gives designers and
House marketing teams suggestions on high-quality materials
that offer the kind of environmental performance required for
the Group’s products.
In 2012, Louis Vuitton created a Materials Reference Library
listing materials sourced by the Innovations & Environmental
Department.

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Environment

A NEW MILESTONE FOR LVMH:
THE “LIFE – LVMH INDICATORS
FOR ENVIRONMENT” PROGRAM

In 2011, LVMH initiated a strategic plan
to identify the key areas that would
strengthen the management of the environmental challenges facing the Group
and its Houses. Implemented by the
Management Committees of seven pilot
Houses and overseen by the LVMH
Executive Committee, the work led to the
definition in 2012 of the “LIFE – LVMH
Indicators for Environment” program,
which is based on nine key aspects of environmental performance:

– eco-design;
– responsibly sourced raw materials and
supply chains;
– material traceability and compliance;
– supplier relationships;
– know-how and expertise;
– reduction of greenhouse gas emissions;
– environmentally friendly manufacturing processes;
– lifespan of products;
– customer information.
The seven pilot Houses taking part in the

initiative belong to the ﬁve LVMH business
groups and are therefore representative of
the broad range of challenges encountered. Each House has defined an action
plan illustrating and prioritizing its strategic areas of focus, and established indicators to monitor their performance. This
methodological approach distinguishes
between specific indicators and shared
indicators, while creating a more in-depth
model that groups together the environmental challenges common to all Houses.

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Environment

STRATEGIC CHALLENGES
DESIGN

MATERIAL PROCUREMENT

PRODUCTION

2. Safeguarding access to
responsibly sourced raw materials

Top priorities
for 2012

1. Environmental considerations
to be included in design

3. Material traceability
and compliance

4. Environmental and social responsibility of suppliers

6. Reduction of greenhouse gas emissions

7. Environmentally friendly
manufacturing processes
Longevity of
the company
and customer
satisfaction

5. Know-how and expertise
8. Useful life of products
9. Customer information

For example, levers such as the use of nonair transportation or the evaluation of the
environmental performance of packaging
based on an Environmental Performance
Index (EPI) could be pursued by all
Houses in a similar fashion. On the other
hand, the operating procedures speciﬁc to
each business require special thought with
regard to supplier-related challenges and
practices, and issues of material traceability and compliance.
Consequently, the “LIFE” program
represents a new form of information

exchange and strategic planning within the
Group. The information generated will be
shared with all teams across all businesses,
and the program will gradually be rolled
out to include the other Group Houses.
The program has been designed in such a
way as to make the environment a more
integral part of managerial processes,
facilitate the development of new management tools, and take into account changes
and ideas for improvement resulting from
the Houses’ own innovative practices.

Seven pilot Houses are taking part in this program:

Wines & Spirits

Fashion
& Leather Goods

Perfumes
& Cosmetics

Watches
& Jewelry

Selective
Retailing

SUSTAINABLE DEVELOPMENT
AT LOEWE
In 2012, Loewe introduced a sustainable
development program featuring more
than 25 action points in six different areas
of the value chain: product durability
(design), supply and production of durable
leather, responsible and cost-effective
logistics, responsible retailing, employee
engagement, and dialogue with
stakeholders. These actions fall within
the framework of the “LIFE” strategic
program.
Each area is managed by a senior company
executive who sits on a sustainable
development executive committee
that meets twice a year to monitor
and support the program’s progress.
In addition, an operating committee
meeting for each area is held quarterly
and attended by the developer of the
action points and all others involved.

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Profile of an employee

Sandrine Noël,
Louis Vuitton Environmental Manager
Sandrine Noël joined Louis Vuitton in 1999 and likes to think
of herself as a self-taught environmentalist. She has not
stopped learning about this field since 2005, when she was
appointed Environmental Manager. Summing up her job today,
she emphasizes that her multi-disciplinary task is to come up
with fresh ideas. “How can we anticipate future risks and
opportunities? What are the House’s sustainability conditions
with respect to the luxury sector’s future economic models?
The role of the environmental department in this context is to
support our operations, help them progress, and protect today’s
values while seeking ways of promoting future growth. We
are also tasked with developing an optimistic vision and
fresh excitement that necessarily involve environmental
responsibility.”
Her main asset in a House of more than 18,000 employees
worldwide is the permanent 100-strong collaborative network
she has set up and which applies the company’s environmental
strategy to every area of operation. “Louis Vuitton is a completely integrated brand. From raw material procurement to
retailing, we work with the entire value chain so that the environment is consistently present at every stage.”
The three successive Carbon Footprints® produced between
2004 and 2010 placed particular focus on the carbon dioxide
impact of our operations. Little by little, our vision became
more specific and ended in the development of the “LIFE”

strategic project, of which Louis Vuitton is one of the pilot
Houses. The true strength of Louis Vuitton within the Group is
having access to all the levers required to drive and control its
projects, from store architecture to real estate and purchasing.
“One of the most noteworthy examples at Louis Vuitton is the
way in which the Logistics Department has incorporated the
environment into its practices and processes, such as developing
maritime transport, green construction, ISO 14001 certification
within the Leather Goods supply chain – which is a first – and
environment-focused transport tenders.”
At the end of our interview, Sandrine Noël leaves us with a
message that is a good summary of the House’s approach:
“Louis Vuitton does not look at the environment from a marketing perspective. Internally, the environment is a land where
there is no focal point. This kind of a challenge leads us to
engage in ongoing dialogue with everyone involved, not just
the business groups, the Group’s Environmental Department
and the smaller Houses who are often very proactive, but also
all other industry sectors. In the end, we all face the same
issues. We share the load and are all committed to a sustainable
future.”

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Environment

INCORPORATING
ENVIRONMENTAL
CONCERNS INTO DESIGN

Education and processes

Reduction in materials and packaging
(eco-design)

Environmental labeling

LIFE
The Houses have a variety of tools and
customized training programs that allow
them to incorporate environmental concerns into the design of their products and
packaging as much as possible. Eco-design
involves reducing packaging weight and
volume, choosing specific components
and raw materials, and employing more
energy-efficient production processes.
Informing the public about a product’s
environmental impact is a growing challenge that has led the French government,
for example, to embark on an initiative in
this regard. The LVMH Group is actively
participating in this work, particularly for
the Perfumes & Cosmetics and Fashion
& Leather Goods business groups.

LIFESPAN
OF PRODUCTS

LIFE
The lifespan of products is one of
nine key aspects of environmental performance listed in the LVMH “LIFE”
program.
It is intimately linked to product quality,
which is one of the hallmarks of a luxury

product. Prompted by the increasing scarcity and rising price of raw materials, governments and companies are now more
than ever questioning how consumer
goods are designed and manufactured.
T h e LV M H G ro u p’s a p p ro a c h t o
these issues involves a combination of
upstream action regarding eco-design
and impact and product lifecycle analyses, and downstream action regarding
maintenance, reparability and recycling.
LVMH aims to reaffirm the specific
nature of its model, which is based on
producing exceptional goods whose durability is validated by their transfer value
and premium quality.

EDUCATION AND PROCESSES
As part of the five-year partnership
between LVMH and CIRAIG (Interuniversity Research Center for the Life
Cycle of Products, Processes and Services,
based at the École polytechnique de
Montréal), Loewe is working on a project
to assess the environmental performance
of the leathers used in ﬁne leather goods.
In December 2012, Loewe set up a
working group comprising the studio, buyers and marketing teams. The goal was to
raise awareness about environmental and
social issues and engage in some brainstorming about eco-design.

BEST PRACTICES
PACKAGING
– Moët & Chandon has developed
a new range of cases, providing suppliers
with Forest Stewardship Council
(FSC)-certified shipping crates.
– As part of a comprehensive project
to develop the brand’s visual identity,
the Dom Pérignon box designed by MHCS
has been completely revised to incorporate
aspects of eco-design. The box is
manufactured in France to limit the
environmental impact related to
transportation and to showcase French
manufacturing know-how. The box is made
of cardboard and fine paper produced
from wood from sustainably managed
FSC-certified forests. The inserts that
support the bottle inside the box are made
from 100% recycled plastic. The synthetic
materials typically used to give a silky
feel have been replaced by 100% natural
eucalyptus fibers. These inserts can be
completely removed so that the consumer
can either keep the box for another
purpose or recycle it.

ECO-DESIGN
AT LOEWE

– To ensure that is has a sufficient supply of high quality leathers to carry out
its five-year strategic plan, Loewe works
closely with breeder associations, such as
Casa de Ganaderos – the oldest breeder in
Europe, founded in 1218 – on the variables
that may affect the quality and traceability
of leather.
– In Madrid, reusable boxes have
replaced the cardboard boxes used for
store deliveries, saving 1.7 metric tons of
cardboard every year. An action plan has
been set up so that this practice can be
extended to other sales locations whenever possible.

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BEST PRACTICES
ECO-DESIGN
The challenge of eco-design is directly
linked to the transfer ideal, which is central
to our brands’ commitment.
– In 2012, Louis Vuitton introduced a new
design of overall, eco-designed in its
studios and featuring improved
ergonomics, style and environmental
impact. It set up a facility where used
overalls could be recycled through a
defibering process.
The project was launched at two pilot sites
in France, Sainte-Florence and SaintPourçain-sur-Sioule, and the aim is to roll it
out more widely in 2013.
The Group is also optimizing the use of
materials. Louis Vuitton’s “Extenso”
project, for example, aims to reduce the
amount of material used and destroyed by
improving cutting techniques.
– Guerlain has played an active role in
revising the EPI calculation tool.
EPI has been used for every new project
since 2008, the goal being to make
improvements to every new product.
– The huge 140 m2 La Petite Robe Noire
advertising banner erected in place
Blanche in Paris in May 2012 was passed
on to Bilum, a company specializing in the
repurposing and recycling of materials.
It was subsequently transformed into
120 collector’s bags (the Petite Robe Noire
de Guerlain “It” collector’s bag) by a
French non-profit organization that helps
disabled people return to the workforce
(ESAT). Proceeds from the sale of these
bags were donated to the Guerlain Support
Fund, created to provide assistance to the
winners of the Montfermeil “Cultures et
Création” fashion show.
– Last but not least, as part of Guerlain’s
sponsorship of the European Institute
for Packaging Technology (ESEPAC),
Guerlain’s director of business
development helped this school/
business create a new teaching track
that focused on cosmetics. He gives
regular classes that include eco-design
principles.

– Loewe has implemented an action plan
to improve the sustainability of its everyday
purchases. Each department’s consumption
has been analyzed and a “green catalog”
produced to meet staff needs.
PACKAGING AND ENVIRONMENT
HANDBOOK

In 2012, LVMH updated the Packaging
and Environment Handbook, which is distributed to all Group Houses. The handbook recaps the questions, methodologies
and technical tools relating to packaging
design and management, eco-design processes, international regulations, and the
environmental impact of materials.

REDUCED USE OF MATERIALS
AND PACKAGING
Eco-design involves reducing packaging weight and volume, choosing specific
components and raw materials, employing
more energy-efficient production processes
and introducing initiatives to comply with
REACH regulations. International and
European regulations have led to more
stringent environmental requirements in
packaging design and manufacture. In particular, the volume and weight of packaging
must not be what some regulations deﬁne
as “excessive”.

The Environmental Performance Index
(EPI) created by the Perfumes & Cosmetics
Houses in 2008 and applicable to packaging is based on the following criteria: separability of material, volume, weight, use of
reﬁlls, and environmentally friendly material. Greenhouse gas emissions generated
by packaging materials are also calculated.
Since 2011, the EPI has been extended to
other Group Houses such as Hennessy and
the Champagne Houses. In 2012, the EPI
Excel spreadsheet was replaced by Edibox
(Environmental Packaging Performance
Index) software, which involved some
major adaptation and resulted in a significant improvement. The tool is now
sustainable, reliable and universal. Edibox
software was introduced in 2012 at Parfums
Christian Dior, Guerlain, LVMH Fragrance
Brands, Make Up For Ever, Louis Vuitton
and Bulgari to integrate environmental
criteria into the design of future packaging
from the very earliest stages. The EPI rating, which is supplemented by CO2 emission data, is currently only calculated for
packaging materials. Plans are in place
to take account of other life cycle stages
(transportation, production, etc.) and indicators (water consumption, consumption of non-renewable resources, etc.). In
the case of MHCS, the EPI is applied to
32% of existing products and new projects,
accounting for 90% of shipped volume.

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ENVIRONMENTAL
LABELING
LVMH and Group Houses are supporting the work being done in France and
around the world regarding environmental
labeling, particularly for the Perfumes &
Cosmetics, Fashion & Leather Goods,
Watches & Jewelry and Wines & Spirits
business groups.
– For instance, to better inform and educate consumers, Sephora and LVMH participated in an environmental labeling trial
in France conducted between July 2011 and
July 2012 using two of Sephora’s flagship
products: Shower Gel and Shower Cream.
Information on greenhouse gas emissions
and water consumption throughout the
products’ life cycle was posted on Sephora’s
website. Labeling was based on the template defined by the French Consumer
Industries’ Liaison and Studies Institute

(ILEC) and used by many companies.
– LVMH is also very involved in work
currently being performed in France on
environmental labeling guidelines for different sectors. It is a member of the working groups focusing on food/wines and
spirits, beauty, textiles and leather, jewelry/
watchmaking and hotels.

PACKAGING PLACED ON
THE MARKET IN 2012 (in metric tons)
158,239 Glass
32,175 Paper/

cardboard
7,682
2,399
340

Plastic
Metal
Textile
3,731 Other
packaging
material

CHANGE IN PACKAGING PLACED ON THE MARKET BY BUSINESS GROUP
2012-2011

(in metric tons)

2012

2011

2010

2009

Wines & Spirits

176,265

163,186

148,145

115,950

8

6,367

6,100

5,711

4,764

4

19,900

23,798

21,974

20,800

486

527

440

386

-8

Selective Retailing

1,548

1,563

1,327

1,327

-1

204,566

195,174

177,597

143,227

– Case manufacturer Terracotta has
designed a new limited edition case,
Terracotta Azzura, in FSC-certified
European beech with a water-based
varnish. It is produced by a European
supplier using a number of artisan
techniques.
– In 2012, Guerlain launched Noir G,
the first completely refillable mascara.
– Guerlain has also embarked on an
ambitious eco-design initiative, such
as introducing Orchidée Impériale refills,
which have been on trial at some Paris
stores since September 2011. Still
available in the Sèvres and Passy stores
in Paris, the refills are now available
in Hong Kong and are expected to be
marketed to further stores in Paris.
The volume of packaging used for the
cases has been reduced by 15% and
more recycled materials are being used
for the box and thermoformed inner
trays.
A label on the back of the box provides
customers with further information
about Guerlain’s commitment
to eco-design.

-16

Watches & Jewelry

BEST PRACTICES
ECO-DESIGN


TOTAL

change (%)

5(1)

(1) Berluti, Bulgari, Château Cheval Blanc, Chaumet, Hublot and Marc Jacobs are not included in this indicator.

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BEST PRACTICES PACKAGING
AND TRANSPORTATION
Reducing the amount of packaging is an
underlying transportation challenge. Less
packaging means lower shipping costs and
less impact on the environment. To this
end, Louis Vuitton is paying special
attention to packaging that accounts for
the highest product volume. In 2012, it
created a multi-disciplinary working group
comprising the Logistics, Industrial,
Purchasing, Environment and Quality
Control departments to help the company
reduce and streamline all of its customer
and shipping packaging. This has led in
particular to the elimination of certain
packaging layers where possible. In terms
of logistics, original packaging boxes are
being used more frequently and optimally,
particularly for small leather goods. Lastly,
a number of other improvements have
been made, such as modifying shoe box
sizes so that they can be nested, resulting
in a 50% reduction in the space needed
for shipping and storage.

BEST PRACTICES
PACKAGING
Since 2012, plastic bags at Make Up
For Ever have been replaced by bags
made of recycled nonwoven fabric.
In 2012, Bodegas Chandon further reduced
the thickness of the plastic used to protect
palettes of finished goods. It has now been
reduced by 50% from 60 microns in 2011
to 30 microns in 2012.

SAFEGUARDING ACCESS
TO RESPONSIBLY SOURCED
RAW MATERIALS AND
PROTECTING BIODIVERSITY
AT THE OUTSET

Protected, critical raw materials
• CITES Convention
• Exotic woods
• Eco-Material Handbook
• Work with the BSR, the RESP platform,
and the LWG

Ethnobotany and sustainable
viticulture

tries to select woods that have been certified by the FSC or PEFC (Programme for
the Endorsement of Forest Certification)
for store construction, window dressings, customer packaging and some of its
exclusive products. In 2012, Louis Vuitton
conducted a program to educate all staff
involved in purchasing wood or wood
products – such as for accessories, trunks,
architecture, merchandising, writing implements, eyewear and customs interface –
about the upcoming requirements of the
EU Timber Regulation, which entered
into force on March 3, 2013. This regulation describes the obligations of operators
placing timber or timber products on the
European market and in particular makes
it illegal to place illegally harvested timber
and timber products on the EU market.
The Group is currently putting together
a compliance methodology (register, due
diligence system, etc.).
ECO-MATERIAL HANDBOOK

LIFE
The LVMH Group has a specific strategy for sourcing and safeguarding raw
materials. The choice of components and
raw materials used in product manufacture is key to safeguarding the environment and precious resources.

PROTECTED, CRITICAL
RAW MATERIALS

CONVENTION CITES

LVMH adheres to the Convention on
International Trade in Endangered Species
of Wild Fauna and Flora (CITES), signed
in Washington on March 3, 1973. In 2012,
it adopted the Animal Sourcing Principles
code of conduct for sourcing leathers.
EXOTIC WOODS

In the Fashion & Leather Goods business
group, Louis Vuitton consistently checks
the origin of wood to ensure it comes from
sustainably managed forests and always

Designed as an operational tool, the
“Eco-Material Handbook,” which is distributed in-house, identifies about forty
materials that offer the kind of environmental performance required for the
Group’s products. It explains how these
materials can be used by each business.
The materials are categorized by application: wrapping, packaging, textiles
and leathers, communications and store
fit-out.
WORK WITH THE BSR, THE RESP
PLATFORM AND THE LWG

Since 2011, LVMH has been a member
of Business for Social Responsibility (BSR),
through which it is involved in particular in
working groups that aim to establish best
practices in the sourcing of exotic leathers.
LVMH is also continuing its involvement
with the Responsible Ecosystems Sourcing
Platform (RESP) by participating in a subworking group that focuses on the traceability of exotic leathers, colored stones and
certain plant substances. In 2012, work was
conducted under the auspices of the BSR
on the application of “Sourcing Principles”
to cattle hides and ostrich leather with the

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goal of evaluating the supply chain challenges for each type of skin. Since early
2012, LVMH has also been a member of the
Leather Working Group (LWG), a British
trade association that has established an
environmental rating system for tanneries.
A sub-group has been set up speciﬁcally for
companies dealing in luxury goods to introduce standards in tanneries that supply the
luxury goods sector.

ETHNOBOTANY AND
SUSTAINABLE VITICULTURE
The Ethnobotanical Innovation Department of LVMH Recherche, Perfumes &
Cosmetics has focused on ethnobotany
for many years. The Department identifies plant species from around the world
that could be used in cosmetics, and helps
protect these species and develop local
economies. In 2012, it co-organized with
the faculty of sciences at the University of
Antananarivo in Madagascar a “Forum on
sustainable development and greater collaboration between partners”. This forum

brought together stakeholders from LVMH
Recherche supply chains in Madagascar
and researchers from the Antananarivo
Laboratory of General Pharmacology,
Pharmacokinetics and Cosmetology
(LPGPC). The goal was to share stories
from the field, study the contribution of
ethnopharmacology to conservation and
sustainable development efforts, and discuss the implementation of the Nagoya
Protocol and Access to Genetic Resources
and the Fair and Equitable Sharing of
Benefits Arising from their Utilization
(ABS) in Madagascar.
At the same time, the LVMH Group,
which had already ﬁnanced a fact sheet at
the end of 2011 prepared by the Foundation
for Biodiversity Research entitled “ABS in
all its forms”, launched an in-depth and
multi-disciplinary study of its cosmetics
supply channels to give the Group’s Houses
an operational tool that met the obligations
of the Nagoya Protocol.
BIODIVERSITY A KEY AREA OF
GUERLAIN’S COMMITMENT

– Guerlain’s “sustainable development”
event, which took place on June 14 and
15, 2012, was an opportunity to educate all
Guerlain France employees about biodiversity issues and present the House’s key
initiatives: orchids and the orchidarium
program, the natural raw materials saved
by the House to create its perfumes, and
efforts being made to protect biodiversity at
its industrial sites.
– To better understand and therefore
protect this biodiversity, Guerlain has
conducted studies at its sites in Chartres,
located at the heart of an industrial zone,
and Orphin, ideally located between flat
open countryside and forest, to produce
a diagnosis of all species present. This led
to a map of each site’s biodiversity and the
development of new initiatives and methods. For example, at Orphin, wildflowers
have been planted on two areas of fallow
ground and an area has been created for
composting plant waste. A number of areas
have also been designated for different
mowing frequencies and the use of glyphosate has been permanently halted.

COMMITMENT OF THE LVMH
GROUP RECOGNIZED IN
FRANCE’S NATIONAL STRATEGY
FOR BIODIVERSITY (SNB)
In October 2012, the French Ministry
of Ecology, Sustainable Development
and Energy awarded LVMH “National
Strategy for Biodiversity Recognition”
for “improving, from upstream to
downstream, the footprint on biodiversity
of LVMH activities, with the goal of having
an actual positive impact on biodiversity.”
The SNB followed France’s ratification
of the United Nations Convention
on Biological Diversity (CBD).
The commitment covers the period
from 2012 to 2014.
The first measures undertaken involve:
– identifying priority areas for diagnosis
of the impact (known or potential)
on biodiversity;
– starting an audit of these areas involving
the pilot Houses that use targeted raw
materials;
– promoting and disseminating effective
initiatives already under way in these areas,
if they are having a positive impact
on biodiversity or the population;
– assessing the impact of the
implementation of the Nagoya Protocol on
Access to Genetic Resources and the Fair
and Equitable Sharing of Benefits Arising
from their Utilization (ABS) for the supply
channels affected.

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In recent years, the Wines & Spirits
Houses have been committed to reducing
the use of phytosanitary products.
Hennessy is pursuing an initiative to
reduce the use of phytosanitary inputs.
In January 2011, a 12-hectare vineyard
managed by its Cognac-based wine-growing subsidiary, SODEPA, was chosen to
join a network of gold standard farms
established by the French government
under the 2018 Écophyto Plan. An action
plan was established for the vineyard that
included the trial of a new Bertoni mist
sprayer equipped with recuperator panels that reduces the amount of fuel and
treatment products used by 30%. For the
last three years, the vineyard has been
trialing the mating disruption method to
protect the vines against vine moths and
avoid the use of insecticides. Hennessy
has also planted flowers on fallow land
and conducted studies on ﬂora and fauna
at other sites.
To publicize its initiatives and set an
example in the region, the House has
sent all of its suppliers a copy of a guide
called “Viticulture durable des Charentes”
(Sustainable Viticulture in the Charente
Region) which summarizes its environmental commitment.

To spotlight the lessons and initiatives of the bee protection project,
in 2012 Guerlain participated in the
third Corporate Philanthropy Awards
for the Environment and Sustainable
Development, organized by the French
M i n i s t r y o f E c o l o g y, S u s t a i n a b l e
Development and Energy. Like Guerlain,
Louis Vuitton has set up hives at some
of its sites (its corporate headquarters at
Pont Neuf in Paris, the Cergy-Pointoise
logistics sites and its Hong Kong warehouse), and in 2011 signed a three-year
study and research partnership agreement with the French National Center for
Scientific Research (CNRS) on the topic
of “Bees in cities – Bees in fields,” which
aims to understand why bees are healthier
in urban environments than in rural ones.
To help preserve the black bee, the
CNRS Honeybee Evolution and Behavior
Team (EVOLBEE) is conducting a project
entitled “Comparative Activity of Bees in
the Black Bee Conservatory in the Urban
and Agricultural Zones of Île-de-France”.
The goal is to analyze and compare the
differences observed between urban colonies of black bees and colonies at the
Île-de-France Black Bee Conservatory
(CANIF), located in the Haute Vallée de
Chevreuse regional nature reserve. Data
collected is cross-referenced with external
data such as temperature, rainfall, and
lighting times.
Hennessy has also installed two hives at
its site in Bagnolet, in the Charente region,
and has planted ﬂowers on a fallow area at
its Haut-Bagnolet site.

THE CHALLENGE

LVMH SYMPOSIUM

– Lastly, Guerlain is a partner in the
Tianzi Mountain Nature Reserve in China
under a 10-year sustainable development
sponsorship program. (See “Environmental
sponsorship and NGOs”, on page 51.)
PROMOTING SUSTAINABLE
VITICULTURE

BEST PRACTICES
– One of the three Château Cheval Blanc
estates, Château Quinault L’Enclos, a
Saint-Émilion Grand Cru, was awarded an
“organic farming” label after the 2012
harvest. This label recognizes the major
efforts made toward sustainable
development since the estate was acquired
in 2008: reduction in phytosanitary
products, planting of hedgerows, and
accreditation for “responsible viticulture”
based on specifications of the non-profit
organization Terra Vitis.
– In Poland, Belvedere is spearheading a
long-term partnership program with its
pure alcohol supplier that focuses on cereal
cultivation and the distillation process. The
work performed in June 2012 concerned
alcohol analysis, eco-production and the
implementation of the REACH regulation.
In November, a seminar was held to raise
awareness about quality challenges and
CSR, and brought together sector
producers and a panel of
university experts.

OF PROTECTING BEES

ON THE FUTURE

For several years, the Houses have been
supporting initiatives to protect bees,
which are the health sentries of our ecosystems. Two Houses which have a historical association with bees are Chaumet,
which has supported the Terre d’Abeilles
(Land of Bees) association since 2002,
and Guerlain, which has entered into an
environmental sponsorship agreement
with the Ouessant Black Bee Conservatory
(ACANB).

OF RAW MATERIALS

The topic of the 12th LVMH Scientific
Symposium held in Paris on September 12,
2012 was: “Natural Resource Depletion
and Cosmetic Raw Materials: What
Strategies Should We Adopt for the
Future?”
The depletion of resources is now not
only known and acknowledged, it is also
the cornerstone of discussion among cosmetics manufacturers.

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“ T h e g ra d u a l c l o s i n g o f re f i n e ries requires us to change,” says Claude
Martinez, CEO of Parfums Christian Dior.
These various impasses have given
rise to collaborative intelligence, new
consumption patterns, and consumers’
demand for authenticity which is being
intensified by regulatory requirements.
The combination has prompted a major
stampede toward “natural” cosmetics.
“The transparency of supply chains has to
be updated,” says Patrice André, Head of
the Product Innovation Department for
LVMH Recherche.

MATERIAL TRACEABILITY
AND COMPLIANCE

REACH regulation

Regulations on cosmetic products

LIFE
To ensure a high level of protection
of human health and the environment
against the risks that can be posed by
chemicals, LVMH anticipates and implements regulations that apply both to the
operation of its sites and to the manufacture of its products.

THE ABILITY TO ANSWER
CUSTOMERS’ QUESTIONS
ABOUT THE ENVIRONMENT
AND HEALTH

LIFE
The ability to answer customers’ questions about the environment is one of
nine key aspects of environmental performance included in the LVMH “LIFE”

program. Polls and studies have shown us
that the ability of our Houses to operate
in compliance with the strictest environmental standards is a growing expectation of customers around the world. The
environmental aspect of our products is
more important than ever. Our Houses
and their in-store associates must be able
to provide customers with full technical environmental data of a product or
process.
– The Perfumes & Cosmetics business group, for example, is particularly
focused on health and safety issues
related to the quality of cosmetic products, not only when they are placed on
the market, but also while they are being
marketed. A customer relations network
has been set up to review all consumer
complaints and carry out cosmetic vigilance of our products. Any claim, whether
an intolerance or a severe irritation,
is reviewed by a specialized team and
assessed by a professional. A consultation
with a dermatologist may be offered to
the consumer. By analyzing these complaints and exercising cosmetic vigilance,
we can explore new avenues of research.
– In 2012, Louis Vuitton revamped the
Environment pages of its website at the
same time as it published an updated

report of its greenhouse gas emissions.
The REACH process is explained in
guides given to sales associates in stores
so that they know exactly how to answer
customer questions.
About a dozen CSR ambassadors have
been appointed in Japan, tasked with
answering questions and providing customers with information on environmental topics.
Presentation kits (display stands and
sales briefs) are currently being prepared
following the award of RJC certiﬁcation
in September 2012.
– Responsible drinking: in 2012, Moët
Hennessy stepped up its commitment to
responsible drinking.
Its initiatives were aimed at employees,
consumers, guests and visitors.
An in-house campaign entitled
“Responsible drinking at Moët Hennessy”
and aimed at 6,500 Moët Hennessy
employees was expanded around the
world. It relies on training, a website
promoting responsible drinking, an
e-learning module and a questionnaire
to enable everyone to assess their alcohol
consumption privately and anonymously.
With regard to consumers, and in
addition to strict compliance with local
regulations, Moët Hennessy practices

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2012 SPOTLIGHT ON THE
HOUSES’ REACH PRACTICES
– As a result of the tightening
of the REACH regulation following
the registration of new substances subject
to authorization and the requirement
to share information between users
of substances and their suppliers,
the Houses have been following up
with their suppliers.
– For example, Givenchy Couture has
implemented a variety of training and
information initiatives to facilitate the job
of the operational managers and help
suppliers and manufacturers better monitor
product returns. It has also launched
a program to test raw materials
and verify their compliance.
– Louis Vuitton has prepared a catalogue
of the safety data sheets for all
the chemicals it uses and has created
an internal tool to share this information
with workshops. A cross-disciplinary
working group has been set up to facilitate
on-site management of chemicals.
Compliance with REACH and all other
regulations is centrally coordinated as part
of the “SAFE” project for effective
monitoring and greater sharing of best
practices between all Louis Vuitton
businesses.

self-regulation, particularly for information and communications, such as its
Code of Best Practices for Marketing and
Communications, guidelines on website
communication, and filtering of minors
on websites. Every year, staff train hundreds of people around the world in the
ritual of tasting the products, explaining
their esthetic, cultural, gastronomic and
historical aspects.
With regard to labeling, all wine bottles
sold in the EU (except in France for regulatory reasons) carry the website address
www.wineinmoderation.eu. Likewise,
all spirits mention www.responsibledrinking.eu. Lastly, Moët Hennessy is an
active supporter of numerous responsible drinking programs throughout the
world, such Wine in Moderation and
ICAP programs.

REACH REGULATION
T h e R E AC H r e g u l a t i o n s t r e a m lines and improves the former legislative framework of the European Union
governing chemicals. The main aims
of REACH are to ensure a high level
of protection of human health and the
environment against the risks that can be
posed by chemicals, promote alternative
test methods, ensure the free movement
of substances on the internal market, and
enhance competitiveness and innovation.
All Houses have incorporated REACH
regulatory requirements in their contractual documents so as to involve all
suppliers in this effort. They also carry
out laboratory tests to certify the absence
of potentially harmful substances in
consumer goods placed on the market.
Experts from the various Houses meet
regularly as part of a REACH working
group to anticipate future phase-outs and
share best practices. The LVMH Group
also holds specific training courses on
REACH implementation.
The Group and its Houses also actively
follow and implement changes in similar
types of legislation in other countries,
such as Proposition 65 in California.

Since April 2012, the Houses have been
sending their suppliers new letters of
commitment specifying their requirements for chemical substance management. Suppliers are requested to ensure
that the substances used are registered
under the REACH regulation, or regulations similar to REACH in the case of
suppliers outside Europe. They are also
requested not to use any substances listed
in the Group’s monitoring tool. This
Internet-based tool, available to suppliers, lists 132 substances that are subject
to restrictions or authorization based on
REACH, as well as other substances of
very high concern (SVHC). The tool aims
to help Houses suppliers better identify
the potential use of these substances
and the materials in which they may be
found. By working to eliminate SVHCs
from the supply chain, the Group’s goal
is to go a step further than the REACH
regulation, which does not ban SVHCs.
The impact of SVHCs on health and the
environment is currently being studied
by European specialists who will decide
whether or not these substances should
be added to Annex XIV of REACH (substances subject to authorization).

REGULATIONS ON COSMETIC
PRODUCTS
– The LVMH Group has a clear policy
on the sensitive issue of using animals
to test the safety of finished products:
the goal is to ensure the safety of the
consumer of our products while still
taking account of animal welfare. For
this reason, since 1989, companies in the
Perfumes & Cosmetics segment have no
longer been conducting animal testing on
the products they place on the market, a
practice that began well before the official ban in the European Union in 2004.
Developing alternatives to animal testing
is a genuine scientiﬁc challenge and the
LVMH Group continues to be extremely
active in this ﬁeld.
– The EU regulatory framework for
cosmetics products changed with the

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adoption on November 30, 2009 of
European Regulation (EC) 1223/2009 of
the European Parliament and the Council
of the European Union. The legislation
will take full effect in July 2013 and
will replace Directive 76/768/EEC. The
Commission’s main goal with this new
regulation is to raise the already high level
of safety for cosmetics consumers by:
• increasing manufacturer responsibility through clarification of minimum requirements for assessing product
safety; and
• increasing the level of monitoring on
the market through the requirement to
notify the competent authorities of any
serious adverse effects.
The LVMH Group has implemented
measures in readiness for the entry into
force of the new regulation in July 2013.
These measures are all the more crucial given the increase in legislation
around the world as a result of cosmetics
regulation.
Other European regulations that have
entered into force, including the most
recent, have been incorporated into
LVMH procedures. These include:
• the Globally Harmonized System of
Classification and Labelling of Chemicals
(GHS); and
• t h e R E AC H re g u l a t i o n , w h i c h
streamlines and improves the former
legislative framework of the European
Union governing chemicals. The main
goals of REACH are to ensure a high
level of protection of human health and
the environment against the risks that
can be posed by chemicals, promote
alternative test methods, ensure the free
movement of substances on the internal
market, and enhance competitiveness
and innovation.
– The LVMH Group is particularly vigilant in complying with statutory texts, the
opinions of scientific committees, and the
recommendations of professional bodies.
It also abides by strict internal rules for
the development of new products – rules
that are also imposed on LVMH suppliers.
The Group has held true to this commitment for several years and backs

this policy with an approach designed
to anticipate changes in international
regulations. This anticipation is made
possible by the efforts of our experts
who regularly participate in the working
groups of authorities in France and the
rest of Europe and are very active in professional bodies. The work done by our
experts in monitoring all the new regulations and changes in scientific knowledge
has led the LVMH Group to ban the use
of certain substances and to work toward
reformulating certain products.
This very stringent requirement guarantees the safety of our cosmetics, not
just at the time they are placed on the
market, but also while they are being
marketed. A customer relations network
has been set up to review all consumer
complaints and carry out cosmetic vigilance of our products. Any complaint,
whether relating to an intolerance or a
severe irritation, is reviewed by a specialized team and assessed by a professional.
A consultation with a dermatologist may
be offered to the consumer. Lastly, by
analyzing these complaints and exercising cosmetic vigilance, we can explore
new avenues of research and improve the
quality of our products.

ENVIRONMENTAL AND
SOCIAL RESPONSIBILITY
OF SUPPLIERS AND
SUBCONTRACTORS

Principle and audits

Suppliers support

LIFE
For LVMH, purchasing and supplier
relationships are a crucial aspect of our

responsibility, risk management and
competitiveness. We must therefore be
careful in our choice of suppliers and
in the nature of our relationships with
them. The supplier chain is a key component of our strategy, enabling us not
only to safeguard supplies, ensure compliance with regulations and guarantee
long-lasting, traceable products, but also
to set up new types of collaboration all
along the chain in matters of eco-design,
product life cycle analysis and waste
management.

PRINCIPLES AND AUDITS
– As part of its supplier relationships,
LVMH requires its partners to subscribe
to its Supplier Code of Conduct by virtue
of which it reserves the right to conduct
compliance audits at any time and without notice.
Every year, the Houses perform preliminary evaluations of their suppliers. For
example, Louis Vuitton has an evaluation
chart for its Leather Goods suppliers. The
environmental portion of the SA 8000
standard has been included in supplier
audits since the last quarter of 2012. A
questionnaire is sent to window dressing
suppliers to learn more about their standard of management. In another example
of the type of measures applied by the
Houses to assess and obtain information
about their service providers, Loewe has
developed a new supplier assessment and
approval process to extend the validity
and quality of the standard criteria taken
into account when selecting a supplier.
More specifically, suppliers of exotic
leathers and furs are sent the Animal
Sourcing Principles code of conduct,
which was developed and adopted in
February 2011 by the founding members
of the BSR Sustainable Luxury Working
Group (SLWG). From 2013, compliance
with these guidelines will be an integral part of the supplier assessment and
approval process.
The House will also be making public
Loewe’s Animal Sourcing Policy adopted

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LVMH 2012
—

Environment

BEST PRACTICES
SUPPLIERS
– Belvedere audits its suppliers’ dry solids
and pure alcohol as part of its safety and
environment control process.
Suppliers have made a number of
improvements, such as installing a new
pure alcohol distillery boiler, replacing coal,
and reducing fuel consumption by 40%.
– Hennessy has pursued a strategy of
dialogue with all its dry solids suppliers and
performed environmental audits since
2008. In 2012, in addition to on-site
audits, it audited 24 packaging suppliers.
Hennessy also conducts awareness
campaigns about the REACH regulation
with its purchasing, quality control and
development departments.

at the end of 2012 and that will be distributed to stores and posted on Loewe’s
website as part of its sustainable development message.
• In 2012, more than 650 social and/or
environmental audits were carried out,
almost 80% of them by independent
experts, at 546 of the Houses’ suppliers.
The Group’s Purchasing Department provided all Houses with a decision-making
tool for social and environmental supplier audits and set up a database to share
the results of these audits.

INITIATIVES TO HELP SUPPLIERS
Local sourcing is an important aspect
of our relationship with suppliers. Louis
Vuitton’s service providers, who are
encouraged to include environmental
goals in their contracts, are selected as
much as possible for their geographical
proximity to the site in question. The
workshop in Barbera, Spain, for example,

has increased its local purchases by 50%
and now buys its leather from six local
tanneries located within a 60-km radius.
The footwear manufacturer in Fiesso
d’Artico, Italy, also buys most of its components and raw materials locally.
As part of a circular economy, waste
management is another major criterion
in supplier relationships. Louis Vuitton
and its suppliers share best practices
with regard to material recovery.
A number of different material recovery channels have been set up, such as
the collection and recovery of waste
from electrical and electronic equipment
(WEEE) by APR2, a company created as
part of France’s “ESAT” initiative, which
aims to help people with disabilities
return to work. LVMH also has its own
recycling platform, CEDRE (recycling
platform). In Italy, the shoe manufacturing unit in Fiesso d’Artico, like other
leather goods workshops, collects and
recycles offcuts of leather and plastic
from local subcontractors.

Guerlain vetiver harvest.

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LVMH 2012
—

Environment

LIFE
The reduction in emissions and discharges is largely the result of efforts
made to limit the amount of resources
used to run sites, workshops and stores,
and in the care taken in the design and
management of a product’s life cycle.
(Air emissions are examined separately
in the section “Energy management and
the reduction of the impact of CO 2”, on
page 30).

Doubly committed to sustainable viticulture for historic and strategic reasons,
the Wines & Spirits Houses concerned
are carrying out a number of initiatives
based on responsible or organic farming to reduce substantially the need for
environmentally harmful phytosanitary
products. (See paragraph “Ethnobotany
and sustainable viticulture” on page 19.)

CHANGE IN WATER CONSUMPTION
(in cubic meters)
Estimated

2009

2010

2011

2,686,251*

Waste reduction and recovery

THE CHALLENGE OF
SUSTAINABLE VITICULTURE

2,749,014*

Prevention of discharges into soil
and water

(COD), calculated after the effluents have
been treated at the Group’s own plants or
at independent plants with which a site
has an agreement.
“Treatment” refers to clean-up by local
authorities, self-clean-up in aeration
tanks, or land spreading operations. In
2012, COD discharges increased by 26%.
Studies are under way to identify opportunities to reduce this discharge in the
Wines & Spirits Houses.

2,787,808*

Water savings

vine irrigation (versus 6,618,614 m 3 in
2011). In 2012, “processing” requirements
accounted for 1,927,065 m3 of water (versus 1,816,716 m 3 in 2011). It should be
noted that 76% of sales areas (Selective
Retailing, Fashion & Leather Goods,
Perfumes & Cosmetics and Watches &
Jewelry) are excluded from the reporting scope, but their water consumption is estimated at 760,000 m3. LVMH
has also responded to the CDP Water
Disclosure questionnaire since it was ﬁrst
established.
The Wines & Spirits Houses are particularly committed to water management
initiatives. As part of its 2012 campaign,
Hennessy conducted a study on optimizing the amount of water used to clean
wine-production equipment. At its site in
Saint-Jean-de-Braye in France, Parfums
Christian Dior installed an analyzer at its
stormwater basin as well as a water loop
system to feed room temperature water
to the latest manufacturing equipment
that previously ran on waste water. This
equipment has generated water savings
of 10,000 m3 per year, almost 10% of the
site’s current consumption. For its part,
Louis Vuitton is conducting awareness
campaigns on saving water. In Japan, for
example, these campaigns have led to
a 14% reduction in water consumption
compared with 2011.

2,803,612*

ENVIRONMENTAL
EXCELLENCE OF
INTERNAL PRODUCTION
PROCEDURES AND
SUBCONTRACTORS

2,500,000

EFFORTS TO SAVE
WATER RESOURCES

PREVENTION OF DISCHARGES
INTO SOIL AND WATER

Water is a critical resource for the
LVMH Group’s operations, particularly in Wines & Spirits and Perfumes &
Cosmetics. Water is required for two very
distinct purposes: agriculture and manufacturing. This challenge has given rise to
a broad range of initiatives, including the
establishment of measuring protocols,
improved consumption management
and monitoring, storm water recovery, and optimal methods for irrigating
vineyards and green spaces. In 2012, the
Group’s Houses used 6,424,228 m 3 of
water for agricultural purposes, primarily

The most significant, relevant emissions reported are discharges by
the Wines & Spirits and Perfumes &
Cosmetics business groups of substances
that contribute to eutrophication. Other
Group activities only have a very small
impact on water quality. Eutrophication
is the excessive growth of algae and
aquatic plants caused by excess nutrients
in the water (particularly phosphorous),
leading to oxygen depletion in the water,
which is harmful to the environment.
The parameter used to measure eutrophication is chemical oxygen demand

2,000,000

1,500,000

1,000,000

500,000

0

2012

* Estimates of water consumption for sales areas excluded from
the reporting scope and audit (76% in 2012, 74% in 2011, 83% in
2010 and 72% in 2009) are shown separately: 760,000 m3 in
2012, 932,298 m3 in 2011, 1,053,469 m3 in 2010 and 729,243 m3
in 2009.

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LVMH 2012
—

Environment

BEST PRACTICES CEDRE

“Vademecum”, a checklist of all types of
waste related to Perfumes & Cosmetics
that can be recycled at CEDRE.
– In 2012, the CEDRE platform processed some 1,625 metric tons of waste,
up 25% over 2011, when 1,300 metric tons
were processed. The platform was also
able to resell some of the materials, such
as glass, cardboard, wood, metal, plastic,
alcohol and cellophane, to a network of
specialist recyclers.
– Guerlain allows its customers to
return their empty products to its Paris
stores for forwarding to the CEDRE platform for sorting and reprocessing.
Customers are given information about
this eco-initiative, which is also promoted on designated display stands in
stores.
– A variety of recycling solutions have
been introduced, such as reselling all
types of leather offcuts. By the end of
2013, Louis Vuitton expects to be able to
use the CEDRE platform to recycle some

WASTE REDUCTION
AND RECOVERY

– In 2012, Guerlain stepped up its use
of the CEDRE platform, sending returns
to the platform from its headquarters
in Levallois-Perret and from employee
stores at the Chartres and Orphin sites.
It also has arrangements for customers
to drop off returns at its Paris stores.
Employees can therefore collect their
empty bottles and pots for recycling.
Obsolete point-of-sale (POS) advertising
and unusable office furniture
at the Levallois headquarters are also
recycled at this platform. At the Orphin
site, a waste map has been drawn up
identifying the types of waste generated.
Green waste is now composted,
and laboratory glass waste
and waste tracking documents
are managed optimally.

In 2012, 76% of waste was recovered
(versus 89% in 2011). At the same time,
waste production in 2012 increased by
28%. The decline in the recovery rate
and the overall increase in waste production are primarily due to the inclusion of Wenjun, which produces a high
quantity of non-recovered waste. Since
2010, the Perfumes & Cosmetics Houses
and Sephora, and since 2011, Louis
Vuitton, have been using the CEDRE
platform, which is dedicated to the sorting and recycling, packaging, and distribution of cosmetic products. This
recycling platform accepts several types
of waste: obsolete packaging, obsolete
alcoholic products, promotional materials, testers used in stores, and empty
packaging returned to stores by customers. In June 2012, the LVMH Group
sent its Houses the latest version of its

0

Wines
& Spirits
2009 consumption
2011 consumption

2009 estimate
2011 estimate

Fashion
& Leather Goods

Perfumes
& Cosmetics

Watches
& Jewelry
2010 consumption
2012 consumption

Selective
Retailing

13,369

27,278

25,964

19,787

718,142*

820,712*

902,436*

720,067*
63,754*(3)

70,486*

27,451*

24,261*

177,299*

222,396*

210,719*

300,000

291,006*

474,939*(2)

600,000

626,513*

606,505*

900,000

680,627*

993,306

1,141,986
928,934

1,200,000

1,238,748(1)

CHANGE IN WATER CONSUMPTION BY BUSINESS GROUP (in cubic meters)

Other
activities

2010 estimate
2012 estimate

* Estimates of water consumption for sales areas excluded from the reporting scope and audit (76% in 2012, 74% in 2011, 83% in 2010 and 72% in 2009) are shown separately.
(1) Change mainly related to the inclusion of Wenjun and the increase in business of the other Wines & Spirits Houses.
(2) Change mainly related to the increased reliability of data for one of the Houses.
(3) Change due to the inclusion of Bulgari manufacturing sites.

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LVMH 2012
—

Environment

COD AFTER TREATMENT
2012

Wines & Spirits

2011

2010

2009

2008

2,790.9(1)

(in metric tons/year)

2,227.3

2,107

3,291.2

1,395.9

23.2(2)

13.6

18.3

14.2

16.1

2,240.9

2,125.3

3,305.4

1,412


2,814.1

TOTAL

(1) Change mainly related to increased business at Glenmorangie.
(2) Change related to the introduction of more regular discharge monitoring at Parfums Givenchy.

of its advertising waste and speciﬁc waste
such as work overalls, obsolete packaging, and scraps generated in France.
Further avenues are currently being
explored to allow other Group Houses to
dispose of such items as obsolete skincare
products, work overalls, and scraps of
cloth and ready-to-wear. Louis Vuitton
carried out a number of initiatives in this
regard in 2012. For example, an initial
trial at the Ducey workshop led to the
recycling of 440 overalls by defibering,
while a campaign conducted for the ﬁrst
time in Northern Europe resulted in the

reprocessing of 1,600 sales-associate
uniforms, also by defibering. In 2012,
a trial to recycle rolls of fabric at the
CEDRE platform made it possible to
reprocess more than 9 metric tons of fabric. With regard to obsolete or damaged
metal pieces, the recovery channel previously deployed only in workshops was
extended to head office, the Cergy repair
workshop and the logistics firm Deret.
A total of 10 metric tons of obsolete metal
pieces were reprocessed and 5 kilograms
of gold recovered.

82,870

PRODUCTION OF GROUP WASTE
(in metric tons)

2010

64,568

57,263

2009

60,000

56,013

80,000

BEST PRACTICES
– Domaine Chandon California and Newton
practice the use of compost in their
vineyards, a method that reduces the
use of fertilizers and helps the drainage
of vines planted in heavy clay soils.
They have also implemented measures
to control erosion.
– Numanthia, in Spain, also practices
responsible vineyard management using
organic instead of phytosanitary products
and reducing the number of aisles
in the vineyards. Numanthia conducted
three studies during the year to gain
more understanding about viticulture
conditions in relation to soil quality
and routine organic fertilization.
Numanthia also began a formal process
to obtain Organic Farming certification
consistent with the Resource Manual
for the Organic Food and Farming Industry
prepared under the EU action plan
for organic farming.

40,000

20,000

0

2011

2012

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LVMH 2012
—

Environment

BEST PRACTICES
– Bodegas Chandon continued
its involvement with the sustainable
development commission of the professional
body Argentina Wineries, launching a bottle
recycling program in June that involved
installing storage and recycling bins for glass
bottles at various shopping centers. The
money collected was donated to a local
authority children’s hospital.
– Belvedere is trying to recover the energy
value retained in waste matter generated
by the fruit maceration process in alcohol
production. The vodka production House
is taking part in a European Union pilot
project developed with the University
of Gdansk and a waste treatment facility
that involves seeking innovative alternative
recovery solutions for the production
of biogas and biofuel.
– Bulgari has introduced measures to avoid
raw material waste in leather and limit
sources of pollutant emissions by reusing
offcuts. In 2010, Bulgari began donating
a portion of unused leather offcuts
to Il Porto di Coenzo, a center for social
and professional insertion for people
with disabilities, that uses these materials
to produce small leather goods
and print greetings cards.
– On November 1, 2012, La Grande Épicerie
de Paris introduced a system for sorting
and reprocessing organic waste. The waste
will be recovered by methane fermentation
and go on to produce biogas, electricity
and fertilizer. Different categories of waste
(organic waste, common industrial waste,
oil, cardboard and glass) are sorted and
processed according to their specific
recovery channel.
– As is the practice at a number of Houses,
Guerlain’s legal department is currently
digitizing its archives to reduce paper
consumption and storage, a project that will
be extended to other departments.
For its part, Louis Vuitton has launched
an international campaign to reduce paper
consumption, encouraging employees
to reduce the amount of paper they use.

CHANGE IN HAZARDOUS WASTE PRODUCTION BY BUSINESS GROUP
(in metric tons)

Hazardous
waste 2012

Hazardous
waste 2011

Wines & Spirits

346(1)

178

196

146


163

121

73

61


980(2)

896

776

767

Watches & Jewelry

26

29

17

14

Selective Retailing

127(3)

64

17

17

Other activities

77

79

111

–

1,367

1,190

1,005

1,719

TOTAL

Hazardous
waste 2010

Hazardous
waste 2009

(1) Change mainly related to the inclusion of Wenjun and increased business.
(2) Some products excluded from the production cycle are classiﬁed as hazardous waste and processed through “hazardous waste”
channels to avoid infringement.
(3) Change related to the inclusion of Sephora France for the waste production indicator.

RECOVERY OF WASTE PRODUCED BY LVMH GROUP SITES IN 2012
Waste recovered

Reused

Recycled

Incinerated
with energy
recovery

Wines & Spirits

3

64

3


6

38

31

75


4

66

27

97

Watches & Jewelry

5

51

22

78

Selective Retailing

3

37

50

90

Other activities

-

86

14

100

TOTAL

4

60

12

76

(as a %)

Total recovered
70(1)

(1) The decline in the recovery rate in 2012 is primarily due to the inclusion of Wenjun, which produces a large volume
of non-recovered waste.

PERCENTAGE OF WASTE RECOVERED

93

95
90

85
85

94

92

92
89

88

86

82

80

76

75
70

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

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LVMH 2012
—

Profile of an employee

Eleonora Rizzuto,
Director of Social and Environmental Responsibility at Bulgari
The partnership forged with the Bulgari family was a highlight
of 2011 for the LVMH Group. The consolidation continued
throughout 2012 and has now been formalized. It was against the
backdrop of this major partnership that Eleonora Rizzuto joined
Bulgari in June 2012 as Director of Social and Environmental
Responsibility.
With more than 20 years’ experience in the oil and gas industry, Eleonaro Rizzuto saw this as a natural and obvious progression in her career: “During the first part of my career, I focused
on assisting major global industrial projects as Finance Manager.
As a result of my experience in the extractive industries sector,
I was particularly receptive to Bulgari’s RJC certification, which it
obtained in December 2011. I have to say that LVMH’s commitment to the environment – which turned 20 in 2012 – was a decisive factor in my choice.”
When it comes to the environment, the need for overlap within
the LVMH Group quickly surfaced as a strategic challenge: “As
part of our reporting, we investigate ways to improve energy efficiency and environmental protection. This means stepping up
our involvement with stakeholders by monitoring the supply
chain and improving the IT tools shared by our four divisions.
Naturally this task must be carried out in close synergy with the
Group’s Environmental Department.” The iconic Italian Watches
& Jewelry House has introduced measures to avoid raw material
waste in leather and limit sources of pollutant emissions by

reusing offcuts. Since 2010, Bulgari has been donating some of
the unused leather offcuts to Il Porto di Coenzo, a social and professional insertion center for people with disabilities.
While sustainable development is a unifying force internally
and a differentiator externally, each business has to define its own
action points: “The success of my remit lies in understanding and
integrating factors that will drive efficiency, cost reduction, innovation and creativity arising from environmental considerations.
We have to apply the same commitment to excellence that governs our brand’s reputation.”

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LVMH 2012
—

Environment

ENERGY MANAGEMENT
AND CO2 IMPACT
REDUCTION

BEST PRACTICES
With regard to modal shift, Louis Vuitton’s
action plan is a combination of solutions:
– in 2012, calls for tender for the selection
of global carriers included a preliminary
selection level based solely on a service
provider’s environmental commitment
and the extent to which this had
been developed;
– given the major strategic challenge of
transporting products to its 460 stores
throughout the world, Louis Vuitton
is working toward ISO 14001 certification
of its downstream supply chain.
In consideration of the results of
its successive Carbon Footprints®,
Louis Vuitton is constantly adapting
its modes of transportation and entire
logistics flows, introducing measures such
as lower transported volumes and shorter
distances for delivering products to stores;
systematic selection of fleets
with the lowest CO2 emissions
(trucks meeting the Euro V standard,
new aircraft such as the Boeing 777
that reduce emissions by 20%, roll-out of
electric trucks in Paris and New York);
road chosen over air for short distances
(saving 844 metric tons of CO2 equivalent
between France, Austria and Germany
in 2011); and waterway and/or sea
freight for supplies of packaging, window
dressing elements and non-seasonal
leather goods and accessories.

Energy management
Energy savings (transportation,
site performance, store
and workshop lighting)
Renewable energy

Atmospheric emissions
Greenhouse gases
Volatile organic compounds (VOC)

heating of buildings. In 2012, subsidiaries
included in the reporting scope consumed
663,232 MWh of energy, broken down
by source as follows: 66% electricity, 19%
natural gas, 6% heavy fuel, 5% fuel oil, 1%
butane-propane, 1% steam and 1% renewable energies. Consumption was up 20%
over 2011.
In descending order, consumption was
attributable to Selective Retailing (33%),
Wines & Spirits (28%), Fashion & Leather
Goods (25%) and Perfumes & Cosmetics
(10%); the remaining 4% was attributable
to Watches & Jewelry and other Group
operations.
The energy consumption of the sales
areas excluded from the reporting scope
(54% of the total sales area) is estimated at
310,000 MWh.
ENERGY SAVINGS

Reducing CO2 emissions is one of the
nine key aspects of environmental performance listed in the LVMH “LIFE”
program.
Consideration of climate change is
enshrined in LVMH policy. The Group
has been assessing the Carbon Footprint®
of many of its Houses since 2002.

ENERGY MANAGEMENT

LIFE
Carbon Footprint® and energy audits provide insights that help develop appropriate
energy-consumption reduction strategies.
The Houses have carried out a number
of initiatives regarding store lighting and
air conditioning, transportation, energy
efficiency and the promotion of renewable
energy sources.
Energy consumption refers to the sum
of the primary energy (fuel oil, butane,
propane and natural gas) and secondary
energy (electricity and steam) sources
used primarily for manufacturing processes and the air conditioning and

– Transportation: for some Houses,
transportation is one of the biggest
sources of CO2 emissions. As spotlighted
in the Transport section published in
the 2011 Environmental Report (pages 7
to 12), the Houses have devised measures specific to their own transportation
challenges and local situation. As part
of its Green Supply Chain project, Louis
Vuitton has developed a tool to calculate
CO2 emissions and produce a real-time
report of transport emissions related to
the shipping of leather goods and accessories transiting through the Eole central
warehouse. The tool, which has been up
and running since January 2012, has been
adapted for use at all relevant destinations
and provides details as close to reality as
possible for each journey made.
For medium- or long-distance shipments, the Houses seek above all to
reduce the portion sent by air or road.
When infrastructure allows, inland waterways are preferred over road transportation, as is the case with Parfums Christian
Dior, which uses the waterway between
the port of Gennevilliers and Le Havre
prior to export. Make Up For Ever has also
reduced its carbon emissions related to
upstream transport by favoring maritime
transport. For short-distance shipments,

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LVMH 2012
—

Environment

With regard to business travel, although
it is difficult to include the full impact
in the Houses’ Carbon Footprints®, it is
nevertheless essential to seek alternative
transport solutions and reduce business
travel by holding conference-call meetings whenever possible. In 2012, Sephora
Europe set up videoconferencing equipment at all of its main European offices.
Guerlain, meanwhile, has developed a
variety of measures under its Business
Travel Plan. For the car fleet owned or
leased by the House, it was decided that
vehicles could emit no more than 130 g of
CO2/km in 2012, compared with 140 g of

200,000

150,000

100,000

50,000

Electricity

Fashion
Perfumes
& Leather Goods & Cosmetics

Natural gas

Heavy fuel

Steam

Fuel oil

Watches
& Jewelry

800,000

971,554*

870,326*

1,000,000

600,000

400,000

200,000

0

2009

2010

2011

2012

* Estimates of energy consumption for sales areas excluded from
the reporting scope and audit (54% in 2012, 60% in 2011, 60%
in 2010 and 50% in 2009) are shown separately: 310,000 MWh
in 2012, 315,972 MWh in 2011, 289,913 MWh in 2010 and
180,638 MWh in 2009.

– Since 2009, Hennessy has been
implementing a “Sustainable
Development Action Plan” to modernize
its vehicle fleet, which at the end of
2012 comprised 30% of green vehicles.
During that period, almost 50 employees
were trained in energy-efficient driving.
In 2012, Hennessy supplemented
its green vehicle fleet with five new
Peugeot iOn electric cars, three
Peugeot Partner electric vans, and eight
Toyota Auris hybrids. Four recharging
stations were installed at the La Vignerie
production site in Châteaubernard,
and 20 employees were trained
in energy-efficient driving.
– In 2012, MHCS acquired an electric
high-clearance tractor for the following
growing year, a world first in this area.

250,000

Wines
& Spirits

Estimated

BEST PRACTICES

ENERGY CONSUMPTION BY SECTOR AND SOURCE
(in MWh)

0

ENERGY CONSUMPTION
(in MWh)

844,338*

For example, Sephora has been working
with transportation company Deret since
December 2009 to deliver 80% of its shipments to its 250 stores by electric vehicle.
Similarly, since January 2012, deliveries to
Guerlain’s Paris stores have been made by
natural gas vehicles (NGVs), while an electric vehicle provides a daily shuttle service
between the House’s head office and the
Paris stores.

CO2/km in 2011, but should aim for 120 g
of CO2/km – a lower threshold than the
European regulatory target of 130 g of
CO2/km by 2015.
Management by objectives is a key condition to achieving the projected changes.
Since 2008, Guerlain has been using a tool
to monitor on a monthly basis the overall
percentage of sea transportation for each
geographic region and campaign. Results
are reviewed by the House’s Executive
Committee. A report of costs and CO 2
emissions in comparison to the year’s target is then sent to all entities.
The target ratio of 60% sea transportation was achieved in 2012, a 7% increase
compared with 2011. For short distances,
such as deliveries to its Paris stores,
Guerlain issued a call for tenders at the
end of 2011 for night transport and NGVs.
At the end of 2012, almost 50% of messenger deliveries were made by bicycle for
short distances.
– Energy performance of sites:
• Following the Carbon Footprint® produced for its businesses and activities,
Louis Vuitton has identified a number
of different solutions. Excluding freight,

716,576*

European cities try to limit deliveries of
goods within town centers and encourage
clean forms of transport.

Selective
Retailing

Butane-propane

Other
activities

Renewable energies

31 / 60


20/06/13 15:28

LVMH 2012
—

Environment

MAKE UP FOR EVER
(proportion of modes
of transport as a %)

BEST PRACTICES

Sea

Air

Road

2011

33

45

22

2012

With regard to employee travel, Louis
Vuitton encourages a variety of working
methods. For example, at head office and
international sites, it offers innovative
remote meeting solutions, such as
videoconferencing. Since 2011,
telepresence solutions have been set up so
that virtual meetings can be held between
several individuals while offering
the resources of an actual meeting room.
The use of shared transport, carpooling
and bicycle rentals are systematically
encouraged.

51

22

26

Louis Vuitton pays particular attention
to store energy consumption and the
management of the raw materials it uses,
such as leather and textiles. In 2012, Louis
Vuitton and LVMH ﬁnalized a new “Guide
to Reading Energy Bills” for stores around
the world. Available on the LVMH Mind
intranet, the guide is designed to make
reporting easier and more reliable.
• The Group’s Champagne Houses have
launched an ambitious energy-efficiency

program based on a savings target of
25% over the next five years. It includes
19 action points for which the ROI will
be spread over three to five years for
an investment of €1.5 million. In early
January 2012, more than 25 people
– energy specialists, winemakers, House
environmental liaison officers, and representatives from ADEME – attended a
seminar on energy efficiency in Épernay.
Following the seminar, MHCS decided

377,902*(4)

347,034*

322,957*

259,085*

257,230*
195,307*

167,737

155,882

200,000

167,769

250,000

188,541(1)

300,000

242,479*

350,000

285,281*(2)

CHANGE IN ENERGY CONSUMPTION BY BUSINESS GROUP (in MWh)

11,768

14,068

19,805

12,435

38,999*(3)

34,508*

14,227*

50,000

12,495*

68,063*

64,500*

100,000

74,237*

69,485*

150,000

0

Wines
& Spirits
2009 consumption
2011 consumption

Fashion
& Leather Goods

Perfumes
& Cosmetics

Estimated for sales areas excluded from the reporting scope in 2009

Watches
& Jewelry
2010 consumption
2010 consumption

Selective
Retailing

Other
activities


* Estimates of energy consumption for sales areas excluded from the reporting scope and audit (54% in 2012, 60% in 2011, 60% in 2010 and 50% in 2009) are shown separately.
(1) Change mainly related to the inclusion of Wenjun and the increase in business of the other Wines & Spirits Houses.
(2) Change primarily due to the inclusion of Louis Vuitton, Kenzo Mode, Givenchy Couture, Fendi, Berluti and Marc Jacobs stores.
(3) Change due to the inclusion of Bulgari manufacturing sites.
(4) Change due to the inclusion of Sephora stores in Italy and Portugal.

32 / 60


17/06/13 14:07

LVMH 2012 Environmental Report Highlights Progress

LVMH 2012 Environmental Report Highlights Progress

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